Unpopular Businesses for Millenials

August 23, 2017 typesofaid.com Staff
As Generation Y enters the work force and becomes of voting age, millennials are no longer the youngest adult generation. Still there several key traits and preferences that set them apart from the other generations and make them stand out on their own. Many business chains will either have to adapt or downsize to survive the demands of millennials in the market.

Coming out of the financial crisis millennials overall have a distrust of banks, bank branches will be a thing of the past as banks shift to the internet and rebrand digitally. According to a Business Insider survey less than 40% of millennials visit physical bank locations and nearly 75% visit a physical bank once or less a month. Another politically motivated industry suffering is oil. Fourteen percent say they would not want to work in oil because of their image of the industry. Interestingly, millennials have less of an interest in motorcycles when they harm the environment less than cars.

Department stores are also having difficulty with millennials. Sears and Kmart are shutting down 150 stores While Macy's is shutting down 15% of their store base. Millennials are less phased by designer brand clothing and more phased by popular lines. Also in the fashion industry, handbag sales are looking to take a turn for the worse as millennials are a trendy generation.

Dine in eating restaurants are suffering. The Chicago Tribune reports in late 2017 Applebee's will close 135 locations and IHOP will close 25. Buffalo Wild Wings CEO Sally Smith wrote in a letter to investors that millennials enjoy cooking at home and that this leads to problems with sit down restaurants marketing to millennial customers. Hooters' method of marketing with attractive women as waitresses are doing little to win over millennials as sales have Stagnated up to 7% in the past 4 years.

Decreasing millennial interest in beer is trending as wine and spirits are preferred. Market insider states beer has had a30 percent decline in sales among millennials in favor of wine and spirits compared to Gen Xers. The tendency among the generation is to drink less alcohol in general compared to older generations.

In the breakfast market, cereal and yogurt are having a sales decrease. Cereal is seen as an inconvenient breakfast choice as millennials find the meal inconvenient. Forty percent of millennials prefer menu items such as breakfast bars and smoothies according to the New York Times. In yogurt, millennials have health concerns wanting organic options for their food over sugar. While low fat was once the norm companies replaced the fat in their products with sugar which is now unpopular. Yogurt sales have dipped 17% in the second quarter of 2016.

Different preferences in cleanliness have hit millennials as well. Napkin sales have hit a slump because they are switching to paper towels. Paper towels are seen as more useful than napkins with more purpose with meals eaten outside the home. In showering sales of soap bars have gone down because they prefer body wash to soap. Mintel reports that millennials believe soap is covered in germs after use. Liquid fabric softener sales also fell as millennials see no use for the product.

In athletics, gyms football, and golf have all taken hits. The reason seems to be the same for all three; time. As Megyn Smith CEO of FitReserve told The New York Post, millennials do not want to be tied down. If they do not want to be tied down to a schedule at the gym, they would not want to be tied down to football instead opting for on demand entertainment. NFL viewership has declined 15%.

Homeownership among millennials has dropped to the lowest level since 1965. They are settling down at later stages in life which has had an impact on home improvement stores like Home Depot, less people buying houses means less improving homes. Young people waiting longer until marriage has also impacted the diamond industry.

Overall millennials are an on the go generation that looks for convenience as their highest priority. They are extremely mobile, wait until high points of stability to start families, and dislike schedule commitment. It remains to be seen how markets adjust.

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